Arsenal remain in contact with Barcelona as they attempt to land the signing of playmaker Denis Suarez, despite the club being unable to make any permanent transfers in January.
Manager Unai Emery last week admitted the club are in a precarious financial situation, and will be unable to splash the cash this month due to a need to keep an eye on the books.
It has put the Spanish boss in an awkward situation, with his wish to be reunited with his former player Suarez now hanging in the balance.
Barca are willing to offload the playmaker, who is not part of their first-team plans, but are less open to the idea of a loan.